If you live outside Japan and sell real estate in Japan, you may need to file a Japanese income tax return for capital gains.
Kudan Partners supports non-resident owners with Japanese property sale tax filings, capital gains calculations, reviews of purchase and sale documents, and tax representative matters. We confirm each service's scope and fee in writing before it begins.
Withholding Tax on Sale Proceeds
When a non-resident sells real estate in Japan, withholding tax may apply to the sale proceeds in certain cases.
The withheld amount may then be settled through the Japanese tax return filing process. The final tax amount may be higher or lower than the amount withheld.
In general, sale proceeds paid to a non-resident seller may be subject to withholding tax at 10.21 percent, unless an exception applies.
Importance of Purchase Documents
Purchase documents help establish the acquisition cost for a capital gains calculation.
If purchase documents are missing, the calculation may become more complex. We recommend collecting purchase agreements, settlement statements, registration costs, renovation records, and other acquisition-related documents as early as possible.
Documents We May Request
The documents we request depend on your situation. They may include:
- Sale and purchase agreement for the sale
- Original purchase agreement
- Settlement statements
- Real estate registration documents
- Brokerage fee invoices
- Renovation or improvement invoices
- Fixed asset tax notices
- Loan repayment information, if relevant
- Documents showing ownership structure
- Prior-year Japanese tax returns, if any
- Withholding tax records related to the sale
Please do not send contracts, tax notices, bank documents, or other sensitive documents through the Free Eligibility Check form. Once an engagement begins, we will provide a secure method for sharing documents.
How We Support Property Sale Tax Filing
- We review the sale structure and ownership information.
- We confirm whether withholding tax applies.
- We review acquisition cost and sale-related expenses.
- We calculate Japanese capital gains tax.
- We prepare and file the Japanese tax return.
- We explain the tax payment steps based on the agreed scope.
For overseas owners selling Japanese real estate, tax representative support and property sale tax filing are often needed together. Kudan Partners can support both through one point of contact, helping you coordinate notices, documents, and the filing process.
Related Articles
The following articles may help you understand non-resident property sale filing and tax representative matters before contacting us:
- Before Selling Japanese Real Estate as a Non-Resident
- Do Non-Residents Need a Tax Representative in Japan?
- Documents Needed for Japanese Tax Filing by Non-Residents
Official References
- National Tax Agency: Withholding tax when purchasing real estate from non-residents
- National Tax Agency: Sale of Japanese real estate by non-residents
These official references provide general information, and Japanese tax treatment depends on the facts and circumstances of each case.
Request Property Sale Tax Filing Support
Start with the Free Eligibility Check, whether you are planning to sell or have already sold. Contacting us before settlement gives you more time to review potential withholding and locate purchase documents. If the sale has already closed, a filing deadline still applies, so please contact us early.
Fees for Property Sale Tax Filing start from JPY 550,000 per transaction (JPY 500,000 plus consumption tax where applicable) for a Standard Case. For other cases, the Property Sale Tax Filing Package starts from JPY 770,000 per transaction (JPY 700,000 plus consumption tax where applicable). See our Fees page for the applicable conditions and details.
This page provides general information only and is not tax, legal, or investment advice.
Submitting an inquiry does not create a client relationship.
See our Scope and Limitations for details.